Global investing no longer about big developed markets
Global investing is no longer about a small number of big developed markets, according to Aberdeen senior investment manager Andrew McMenigall.
Speaking at an Aberdeen lunch on global equity, McMenigall said emerging markets would account for an increasing share of the world’s largest companies.
McMenigall therefore believes the global index is unrepresentative of where the real opportunities lie and investors who confine themselves to a portfolio of mainly US securities may be missing out.
He questioned whether the benchmark was the most appropriate starting point to build a portfolio.
Aberdeen firmly believes that the “benchmark looks at the past not the future”, McMenigall said.
He said a benchmark strategy would have meant considerable exposure to the US, which has consistently underperformed the global peer group.
McMenigall also stressed the importance of an investor knowing what sort of companies they wanted to invest in and sticking to what they know.
“Know what you’re good at and know what you’re not good at,” McMenigall said.
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